United States and Puerto Rico IT Managed Services Market Highlights Over 2019 - 2028
The United States IT managed services market is estimated to garner a revenue of USD 174,853.6 million by 2028, up from USD 71,760 million in 2019 by growing at a CAGR of 11% over the forecast period, i.e., 2020 – 2028. In Puerto Rico, the market is projected to record a CAGR of 7.5% during the same period, reaching a value of USD 973.3 million in 2028 from USD 510 million in 2019. The growth of the market can be attributed to the increasing need for evolved IT infrastructure in several industry verticals, and the growing emphasis of small and medium enterprises on core business and reduced risk. Furthermore, managed service providers (MSPs) offer higher financial benefits to organizations by providing sophisticated technologies as lower subscriptions rate, which in turn is an additional factor expected to accelerate the market growth.
Large enterprises do not have any financial constraints. However, small and medium enterprises can benefit to a large degree from IT managed services as it reduces the need to maintain an IT infrastructure within the company and hire tech-savvy professionals. On the basis of the chosen subscription plan, the MSP will maintain and update any system failures accordingly in a cost-effective manner.
The United States is the home to some of the world’s most advanced software and information technology (IT) industry around the world. The robust adoption of sophisticated IT technologies in a wide range of sectors, including telecommunications, media and entertainment, healthcare, and financial services, is assessed to boost the demand for managed services in the country. In addition, the user base of digital banking services has also witnessed a notable increase in the last three years. The total percentage of users of digital banking in the United States increased up to 64% in 2020 from around 61% in 2018.
The market is anticipated to benefit from the increasing number of collaborations and acquisitions for improving the service portfolios of companies and the rising adoption of IoT solutions, connecting hardware devices, communication services, embedded software and managed services. Additionally, other than IoT, the growing implementation of managed services for cloud, DevOps and Big Data, are also expected to hold lucrative opportunities for managed services providers in the near future.
However, the COVID-19 pandemic impacted the revenues of several market players. Organizations decided to strengthen their businesses by deploying innovative strategies and collaborations. Although, there was almost negligible effect on the pricing of IT managed services, such as managed network services, network SD-WAN and managed network provisioning, in the U.S. and Puerto Rico.
United States and Puerto Rico IT Managed Services Market Regional Synopsis
The IT managed services market in the United States is segmented into six regions, West U.S., Northeast U.S., Southeast U.S., Southwest U.S., and Midwest U.S. Out of these, the market in the West U.S., which comprises of four major states, including California, Alaska, Washington and Oregon, is projected to hold the largest market share of 26.90% by 2028 by growing with the highest CAGR of 11.7% during the forecast period. The market in the region is further expected to reach USD 47035.6 Million by the end of 2028, up from USD 18298.8 Million in 2019.Factors projected to propel the market growth in this region are increasing technological advancements in artificial intelligence and IoT technologies, and the rising need for cost-effective IT budgets for the enforcement of IT managed services across organizations. Apart from these, the growth of the market in this region is also dependent on the growing adoption of innovative technologies in the BFSI, transportation, government & defense, retail & e-commerce, and other sectors. Moreover, out of all the states in the west United States, California is projected to witness the highest CAGR of 12.1% during the forecast period owing to the strong presence of major industry players who thrive to deliver reliable and positive digital practices.
Growth Drivers and Challenges Impacting the Growth of the United States and Puerto Rico IT Managed Services Market
Growth Drivers
- Rising and Evolving Need for IT Infrastructure among Different Industries
- Emphasis on Core Business and Reduced Risk
- IT Managed Services Able to Offer Financial Benefits
Challenges
- Increasing Number of Security Breaches and Cyber Threats
- Absence of Skilled IT and Cybersecurity Professionals
United States and Puerto Rico IT Managed Services Market Segmentation Synopsis
The United States and Puerto Rico IT managed services market is segmented on the basis of enterprise size into small & medium enterprises and large enterprises. In the United States, the segment for large sized enterprises is evaluated to occupy a large revenue of USD 1,08,552.3 million by the end of 2028, up from USD 46,569.3 million in 2019. In 2021, the value is calculated to be USD 55,008.3 million. The expansion of this market segment can be ascribed to the presence of strong architecture and large revenue pool of large enterprises to implement managed services. Moreover, the segment for small & medium sized enterprises (SMEs) in the United States is estimated to observe the highest CAGR of 11.9% during the forecast period owing to the increasing establishment of IT startups, escalating adoption of complex automation systems and growing usage of cloud-based technologies in SMEs. In 2018, there were more than 30 small businesses operating in the United States. On the other hand, the large enterprises segment in Puerto Rico is projected to gain the highest market revenue of USD 578.2 Million by the end of 2028.
Additionally, based on industry vertical, the segment for BFSI in the United States is expected to occupy the largest market share of USD 7.053.8 million by the end of 2021 and observe notable growth of 13.4% over the forecast period, owing to the high investments of banks and other institutions for the deployment of IT managed services.
Top Featured Companies Dominating the Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the United States and Puerto Rico IT managed services market that are included in our report are IBM Corporation, Infosys Limited, Cisco System Inc., DXC Technology Company, Accenture PLC, Hewlett Packard Enterprise Development LP, AT&T Inc., Verizon Communications Inc, Dell Technologies Inc., Tata Consultancy Services Limited, Rackspace Technology, iNubo IT, CP CORP, and others.
Key Reasons to Buy Our Report
- The report covers detailed analysis comprising market share attained by each market segment and its sub-segments.
- It covers market dynamics including growth drivers, trends, potential opportunities, price trend analysis and challenges that impact the market growth.
- The report includes detailed company profiles of the major players dominating the market.
- We use effective research methodologies to calculate the market numbers and provide value-added assessment for overall growth.
- We provide customized reports as per the clients’ requirement helping them to see possible and unexpected challenges and unforeseen opportunities in order to help them reach their goal.
